What are regulations on management and utilization of final accounts review and approval expenses of public investment funds for projects upon completion in Vietnam?

What are regulations on management and utilization of final accounts review and approval expenses of public investment funds for projects upon completion in Vietnam?

Pursuant to Clause 2, 3, 4 Article 46 of the Decree 99/2021/ND-CP stipulating as follows: 

2. Management and utilization of final accounts review and approval expenses:

a) In light of the regulations laid down in clause 1 of this Article and application dossier for review and approval of the final settlement submitted by the investor, the agency in charge of review of the final settlement shall clearly determine expenses for review and approval of the final settlement, therefrom requesting the investor in writing to pay expenses for review and approval of the final settlement.

For the project funded by the ending year’s budget, if the investor is on the way to submitting the final settlement dossier prescribed in Article 47 herein, the agency in charge of reviewing the final settlement shall have a look at expenses for review and approval of the approved or adjusted final accounts of the project or the cost estimate (if any) in order to request the investor to pay expenses for review and approval of the final accounts. After consulting the regulations laid down in clause 1 of this Article and application dossier for review and approval of the final settlement submitted by the investor, the agency in charge of review of the final settlement shall clearly determine expenses for review and approval of the final settlement. If the amount that the investor has paid is greater than expenses for review and approval of the final settlement that the agency is paid in accordance with regulations, the agency shall refund the investor the excess to reduce the value of final settlement in the project.

The investor shall request the regulatory payment body (State Treasury) to pay the agency in charge of review of the final accounts according to the written request of the agency in charge of reviewing the final accounts and pay expenses for pre-approval review of the final accounts which are calculated according to clause 1 of this Article.

b) Final accounts review and approval expenses are categorized into the followings:

- Direct expenditures on final accounts review and approval.

- Remuneration paid to professionals or consulting organizations conducting final settlement in case where the agency in charge of reviewing the final settlement signs the time-based contract with professionals or hire consulting organizations.

- Expenses for business travel, stationery, translation, printing, conferences, seminars, procurement of computers or equipment for verification and approval of the final settlement.

- Other expenditures associated with final accounts review and approval.

c) Based on final accounts review and approval expenses and classification of these expenses prescribed in point b of clause 2 of this Article, the agency in charge of reviewing final settlement shall formulate expenditure regulations for final accounts review and approval for submission to the head of its immediate superior for their consideration of grant of approval decision so that they are implemented annually till the date on which they are modified or supplemented (if any).

d) Revenues generated from final accounts review and approval shall not be retained for contribution to the wage reform fund; shall not be recorded and finally accounted for jointly with the annual administrative budget of the agency in charge of reviewing and approving the final settlement. Final accounts review and approval budget that is not used up in a year may be brought forward to the next year for use.

Based on revenues and classification of expenses prescribed in clause 2 of this Article, the agency in charge of reviewing the final settlement shall complete the money transfer form (Form No. 05/TT) to request payment of final accounts review and approval expenses according to types of expenses specified in point b of clause 2 of this Article (where there are multiple expenses, the budget unit specifies them on the payment chart clarifying types of expenses that bears signature and stamp of the agency in charge of reviewing the final settlement) and submit the complete chart to the regulatory payment body (State Treasury) as a basis for payment. The agency in charge of reviewing the final settlement shall not be required to send proofs of payment, contracts or invoices to the regulatory payment body (State Treasury). Based on the request of the agency in charge of reviewing the final settlement, the regulatory payment body (State Treasury) shall pay final accounts review and approval expenses to the agency in charge of reviewing the final settlement.

3. Where the independent audit contractor does not carry out several work agreed upon in the audit contract after the investor’s fulfillment of their obligations to provide all required documents according to the audit contract, the investor shall consult contractual terms and conditions and quantities that the audit contractor does not carry out to reduce independent audit expenses in proportion to such quantities.

4. In case of force majeure events that may occur, thus changing the scope of work in the contract in effect, the investor and the independent audit contractor shall consult regulatory provisions on contracts to add or rule out the agreed-upon work.

What are regulations on reporting of the final accounting for public investments in completed projects in the budgetary year in Vietnam?

Pursuant to Article 48 of the Decree 99/2021/ND-CP stipulating as follows: 

1. Reporting data shall be collected from January 1 to end of December 31 in the calendar year.

2. By January 20 each year, agencies in charge of reviewing the final settlement that are the inferior authorities of ministries, central authorities, state corporations, incorporations; Departments of Finance, Divisions of Finance and Planning in districts shall send the review report on final settlement of public investment funds for completed projects in the budgetary year to agencies assigned by ministries, central authorities, state corporations, incorporations or provincial People’s Committees to take charge of compiling reports. By January 30 each year at the latest, Ministries, central authorities, state corporations, incorporations, provincial People’s Committees shall send reports on situation of final settlement of public investments in the completed projects in the year under their authority to the Ministry of Finance so that the Ministry of Finance completes the final accounts of public investment funds for completed projects in the year for nationwide disclosure purposes.

3. Methods of sending and receiving reports: All reports must be sent and received by paper or electronic means in accordance with regulations currently in force.

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